Slovakia's financial services industry is relatively small for the CEE region, particularly outside the banking sector, and isdominated by the local subsidiaries of large EU-based banking groups. The relatively low level of development leaves room forcatch-up growth in these sectors over the long term, while a favourable macroeconomic and demographic backdrop shouldsupport expansion in the coming years. Rising household debt, tighter capital requirements, and monetary normalisation at theECB represent key headwinds in the coming quarters.